The continuation of this subscription was made at the request from the Maldives government to secure budgetary support from the Indian government.
State Bank of India (SBI) has announced its subscription for an additional year of a USD 50 million government treasury bill issued by the Maldives Ministry of Finance.
This decision comes following the maturity of the previous subscription.
Under the terms of special government-to-government arrangement, SBI has been subscribing to these government treasury bills at zero cost to the Maldives government. This means the Maldives incurs no interest expense on the borrowed amount.
The continuation of this subscription was made at the request from the Maldives government to secure budgetary support from the Indian government.
Additionally, the rate of interest on these treasury bills is covered by the Indian government. The subscription comprises three treasury bills, each valued at USD 50 million, with the interest on each bill paid yearly by India.
The first treasury bill, valued at USD 50 million, matured in January 2024, which the Maldives had repaid.
The second treasury bill, also valued at USD 50 million, is set to mature in May 2024. In response to a special request from the Maldives, SBI has opted to extend its subscription for another year.
The third treasury bill is due to mature in September.
The extension was granted after the deliberations held between Minister of Foreign Affairs Moosa Zameer and India's Minister of External Affairs Dr S Jaishankar during the recent official visit to India, the Foreign Ministry said.
"The Government of Maldives is highly appreciative of the generous support that Government of India has been providing to the Maldives in the form of budgetary support," a statement released by the Foreign Ministry reads.
Treasury bills, first introduced by Maldives central bank, Maldives Monetary Authority (MMA) on September 10, 2006, are issued via private placements to commercial banks, state-owned enterprises (SOEs), institutional investors and private companies with the main aim of raising funds for government budget financing requirements.
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